For some time now, Darlinghurst has been one of inner-Sydney’s real estate stars.
In fact, between December 2013 and August 2017 the average price of a Darlinghurst property rose by 81.3% and cracked the $2 million mark.
And we don’t think Darlinghurst is done yet. Instead, we’re predicting another good year for the suburb, even if the overall Sydney property market isn’t as hot as it once was.
Unbeatable central location
In today’s property market probably nothing matters more than proximity. And, quite frankly, it doesn’t get more central than Darlinghurst. Sure, the suburb may not have a train station, light rail, or ferry, but let’s face it – with a walk into the city of just 10 minutes – you probably won’t miss any of them anyway.
For those times you do need to venture further afield, Darlinghurst is well served by buses from Oxford Street or William Street, which will take you anywhere in Sydney’s East from Edgecliff and Double Bay to Bondi Junction or Bondi Beach. And with a GoGet lurking on virtually every corner, you could even choose to join the 45% of Darlinghurst residents who don’t own a car.
If that’s not enough, Darlinghurst’s position on the hill overlooking Woolloomooloo means you also get amazing and unexpected views. And you never need to stray far to find a cafe, restaurant, bar or shop to keep you entertained.
In other words, with lifestyle, convenience and outlook, Darlinghurst has it all.
One of the key factors that drives Sydney property prices is population growth. And here, again, Darlinghurst gets full marks. Over the five years from 2011 to 2016, census data shows its population increased by 1,283 or over 12% from 10,044 to 11,327 residents.
At the same time, housing stock has also increased, with over 400 new homes added in the same period. This is set to continue with the trend for commercial to residential redevelopment. A case in point is the redevelopment of the old Crest Hotel into Omnia, which will release 135 new apartments onto the market by the end of 2018.
For a while now, Darlinghurst has been popular with young professional families who like its eclectic vibe and charming terrace houses. And where there are professional families, there are usually good schools too.
Darlinghurst Public School now has a big reputation that means it’s fast becoming one of the most popular primary schools in Sydney’s East. Many families are now seeking to move into the Darlinghurst Public School catchment area to give their kids a good public education. If you’re lucky enough to own a property in the catchment area already, that can add serious dollars to the value of your property.
Coupled with this, Darlinghurst is also home to some of Sydney’s very best independent schools, including SCEGGS Darlinghurst and Sydney Grammar. It’s also a short bus ride away from the East’s other private schools, as well as well-regarded selective high schools such as Sydney Boys and Sydney Girls High. And it’s home to some tertiary colleges too – including the National Art School.
A tight rental market
Darlinghurst continues to be a top-tier suburb for property investors and it’s little wonder. Properties in the area still attract strong demand from renters (almost 60% of homes are rented according to the most recent Census data), particularly young professionals who want to be close to where they work and play.
While yields may be down from a few years ago – they currently stand at around 2.5% – this reflects the market more broadly. And, when rents do start to rise again across Sydney, you can be confident that demand will mean Darlinghurst is right at the top of the pack.
A variety of housing stock
Darlinghurst really is an area you can stay in as your circumstances change and your family grows. It’s also a great place to be once the kids fly the nest and you’re looking to downsize. That’s because, unlike some inner-city suburbs it has a real variety of housing options, from one-bedroom pads to reasonably spacious family homes and from arty terraces to chic designer apartments.
People are choosing to stay put in Darlinghurst for many years, while at the same time more-and-more people are looking to move in.
Darlinghurst has done well for some time now but with so much going for it, we think this could be only the beginning of what’s quickly becoming one of the city’s premium property areas.